An Research On Optimizing The Non-interest Income For Chinese Commercial Banks Based On The Sino-American Banks' Comparison

With the development of financial liberalization and application of new financial technology, banking industry in western countries has been steadily increasing its reliance on nontraditional business activities that generate fee income, trading revenue and other types of non-interest income since 1970s.The proportion of non-interest income has been remained relatively low in China. Whereas, people have realize the importance to adjust the income structure of commercial banks in recent years under the pressure of the tightening interest margin. Many innovative bank products and services are provided to create more non-interest income although how it will affect banks'performance is still a question.In this article, we start with the concept and character of non-interest income and analysis the reasons to develop non-interest from a theoretical angle. We compare the China's commercial banks with the American's in the fields of the reason for the non-interest.In the empirical analysis part, we select the financial data of 13 commercial banks of China and 20 banks of American during the period of 2000 to 2008 as the research sample. The result indicates that there is a negative correlation between non-interest income ratio and banks'performance of China. Finally, some suggestions are given to China's commercial banks on how to improve non-interest income and enhance banks' performance...